listing Archives - Apartment Specialists

Tag: listing

SUMMARY:

A multi offer means more than one buyer has made an offer on the apartment – it means you have to put your best possible offer forward as you only get one chance and if you miss out, unfortunately there is nothing can be done about it.

When putting in an offer you need to consider how much you will pay and how you will feel if you miss out on this purchase.

When being told there is a mulit offer You will be notified by your agent that this is a multi-offer situation and you should be asked to sign form explaining that you have understood the situation.

IF THIS DOES NOT HAPPEN MAKE A COMPLAINT

If it comes to the stage where your offer was not accepted and you would have paid more, unfortunately there is nothing that can be done or changed. This can be frustrating or disappointing for you.

determine best sales method selling apartment

Apartment Specialists Podcast No: 48

Summary:

There are different sales method that can be quite effective when selling different types of real estate properties. But what if you are selling one type of property? How do you know that this is the best sales method to achieve the highest price? This article answers all these questions.

TRANSCRIPTION:

Andrew Murray, Apartment Specialists. Today we are talking about how, as an owner, do you figure out what is the best sales method to use to get the highest price for you apartment.

There are big discussions always in the industry on which is best. Is it tender? Is it auction? Or is it listing with a price? I’m not going to go over that because I’m really going to talk about how, you as an owner, can figure out what’s best without going through all of the debate. And that is going straight to the source of the sales. Every real estate agent has access to all the recent sales in your building. And what they also have access to is the method of sale used to achieve those prices. What you want to be doing is, asking for, not only the recent sales in your building, which will come with your appraisal, but also what methods of sale were used to achieve those prices. And  it is something I actually haven’t seen in an appraisal yet from other agents. But, it should be – is that method of sale. And from that, for example, if a building is an investor building, most likely, auction’s not the best method to use because emotions are not involved. It is all about the numbers.

But, you want proof. You want to know it. Ask the agent “Can you please show me the highest prices that have been achieved, say the top five highest prices achieved in the building in the last 12 months and what sales methods were used to achieve those prices?” And that is going to give you your answer. If it was auction, auction your property. If it was listing with a price, list with a price. If it was tender, choose tender. That will give you your answer every time in every building.

In the situation, if you are in a building where there are only a few apartments, what you want to do is also ask, What similar buildings are there? And ask this to the agent, What other buildings in the city are similar and can you also give me those statistics and the record sales or sale prices achieved in those buildings, and what methods of sale were used to achieved it? So, then again you have got a fool proof answer given to you in regards to what method of sale is best to use.

I hope that has helped. It is pretty fool proof. Pretty simple. I advise that every single owner get that information before they choose what method of sale to use.

Next time I am going to talk about what happens, like as an owner – and I get this quite a bit from overseas owners – if you come across a buyer who will pay for the apartment while you’re already listed with a real estate agent, what happens if you find that buyer yourself, what happens? I’ll talk to you about that next time.

Cheers!

why auction isnt achieving the highest prices for auckland apartment sales

Apartment Specialists Podcast No: 15

Summary:

Have you ever thought of a reason why an auction in the Auckland CBD is not achieving the price you’ve always wanted? I’ll discuss my points in this podcast.

TRANSCRIPTION

Andrew Murray, Apartment Specialists. Why is an auction in the Auckland CBD in most cases, not achieving the highest price? Now, this is quite a big topic. So I’ll take it down to a couple of points and do a podcast for each one.

Now, the first one is: a bid at auction is unconditional. So that means there’s no conditions. You know that you bought it. Once that hammer goes down, you’ve bought it. So in this market buyers are very scared because of bad publicity because of the leaky building issues. And the amount of due diligence they want to do to make sure that they are making a safe purchase. This deters a lot of purchasers.

Also, the finance is very different. Unlike with a house, where you may get a pre-approval to a certain amount. A pre-approval with a bank will still require  a valuation, every time, in most cases. And the big one is this, okay they may have given you a pre-approval but then when you find an apartment in a particular building, they may not give you finance because they’ve got too many – they’re linked to too many apartments in that building. So, they’re exposed to too much risk or they might just have problems with that building or just reasons that they won’t even tell you.

So, it’s a lot harder for someone to go and purchase at auction. You’ve got to be very, very confident. And if you look at it, I’ve heard of purchasers who wanted to do a building inspection, as well as a valuation.

So when you’re dealing with apartments that are not worth as much as houses and they’ve got to do all this due diligence, it’s very difficult for them to spend a thousand dollars on each one, looking into them. So that’s one of the reasons why auction is not achieving the same results as with houses.

Next week, I’m going to be talking about the supply issue and the difference between the apartment market and the housing market.

Cheers. Bye.

best selling methods auckland apartment sales

Apartment Specialists Podcast No: 10

Summary:

In this podcast, I’ll be talking about the best selling methods and common schemes of real estate agents, especially when auctioning your apartment and how they get more when they do.

TRANSCRIPTION:

Andrew Murray, Apartment Specialist, methods of sales.

Did you know real estate agents get paid more to auction your apartment than they do to list it with a price? Now, what I mean by that is, when the agent gets paid the commission, the listing agent will get a higher percentage of that commission if they auction the property. And the person who found the buyer will get a smaller amount of commission. And that has all kinds of implications. That often means that, if someone’s got a really good buyer that’s not on their listings, they would rather push their buyer towards a listing that’s listed with a price, because they get paid more money. It also means that – in a lot of occasions – well, if you ask yourself if you’re going to get paid 70% just to sell a property and not find a buyer, are you going to do as much work to find that buyer? Well, you can make that conclusion yourself. So, it’s quite interesting.

Now, about the other point… Okay, if you ask me right now. How I’d sell my house in Auckland, I’d say I’d auction it. So, what am I saying here? I’m not saying auction is not a very good way of selling. I’m saying that it has its time and its place. If you ask me how I would have sold my house three years ago – no way by auction. Because we weren’t in a burning market. We weren’t in a time where – basically there was more demand than supply. Now, I have apartments and my parents have apartments. If you ask me how I would have sold my apartment three years ago, I would definitely list it with a price. If you ask me what I advice I give my parents – list it with a price. If you ask me right now in a burning market how would I sell my apartment, I’d list it with a price.

Now, what’s the difference between an apartment and a house? There is a huge difference. And that’s the reason why statistically, when you look at all that, how the highest prices are achieved – and most buildings I know are through listing with a price. It’s because of due diligence. It’s because people are scared of buying apartments. They need to do their due diligence.

When you come into an auction, you’re making an unconditional offer. And a lot of people they want to have conditions. Before they purchase, they want to have a building inspection. They want to be able to go through the minutes with a fine tooth comb. They want to be able to get an evaluation and a conditional price. There’s a lot more conditions, people are a lot more scared when they’re purchasing apartments. Going to an auction, doesn’t suit them. Also, values.

Also, if you’re looking at apartments now, we’ve got so many of them. If you look in a suburb, there’s probably maybe 20 at the moment – 20 listings in a suburb, maybe 30, maybe 40. Well, in an open CBD, there’s about 700. And if you look at say 3 bedroom, there’s probably about 300. So there’s so much choice. You look at the traders, how do they sell their apartments? Now, these are people who buy apartments either directly from the owners or off real estate agents and then – they buy them undervalue and then sell them at the maximum price. And that’s their job. That’s their business. Do they auction their apartments? Nine times out of ten they do not. I see a lot in the housing market, but not in the apartment market. So, ask yourself, that’s their business to get the highest price “Why aren’t they auctioning their properties when selling their apartments?” Let’s look on Trade Me. Look at Icon City. That’s the biggest trading in Auckland apartments or apartments in New Zealand. And they’re not auctioning, they’re listing their price. So, that should give you a good idea.

If your agent does tell you that the best way to sell your property is by auction. Ask to see the values or the highest sales achieved in your building and find out what methods of sale were used to achieve those sales. And you can get that information from the REINZ. So even a real estate agent can get that information. So it is available and that will help you choose what method of sale is best for you. And if they are pushing auction and it’s not the best method so sale – you’ve got to ask where their motivation is. Is it for them? Or is it for you? So I hope this helped. I think it will have given you a very good insight – especially into the apartment market which is very different.

And next week I will be talking about knowing your building. How important it is that you choose an agent that knows your building and the questions to ask and to find out if they do.

Cool. So, if you haven’t downloaded it already, as I mention on each podcast. I had a lot of great feedback. This is just one of ten points on mistakes owners make that I see them making which costs them thousands of dollars in selling their apartments. Download it from www.apartmentspecialists.co.nz

Cool, cheers.